Principal-Only Stripped Mortgage-Backed Securities (Tables)

9 Months Ended

Sep. 30, 2025

Principal-Only Stripped Mortgage-Backed Securities

Summary of principal-only stripped MBS

Following is a summary of activity in the Company’s investment in principal-only stripped MBS:

	Quarter ended September 30,				Nine months ended September 30,
	2025		2024		2025		2024
	(in thousands)
Balance at beginning of period	$	784,958	$	914,223	$	825,865	$	—
Purchases		—		—		—		935,356
Repayments		(34,991)		(23,054)		(119,258)		(36,506)
Changes in fair value included in income arising from:
Accrual of purchase discounts		13,642		20,129		31,676		29,219
Valuation adjustments		10,412		48,969		35,738		32,198
		24,054		69,098		67,414		61,417
Balance at end of period	$	774,021	$	960,267	$	774,021	$	960,267

Following is a summary of the Company’s investment in principal-only stripped MBS:

	September 30,		December 31,
	2025		2024
	(in thousands)
Principal balance	$	942,225	$	1,061,484
Unearned discount		(165,742)		(197,418)
Cumulative valuation change		(2,462)		(38,201)
Fair value	$	774,021	$	825,865
Fair value of principal-only stripped mortgage-backed securities pledged to secure Assets sold under agreements to repurchase	$	774,021	$	825,865